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Board of Directors Resolutions (or Board of Directors Resolutions) are formal documents that describe and record the official decisions taken by a board of directors. As such, they are binding on the organization. They may be requested by company’s shareholders or the government authorities as part of a confirmation process.
Board resolutions are typically created at board meetings, and must be passed by a majority of the board members. They may also be ad hoc documents that are voted upon and ratified by the board in lieu of a meeting. There are several different types of resolutions. These include motions to waive notice, minutes, or adjournment.
At a board meeting, the board will begin by discussing the proposed resolution, and then decide the need for additional information or details are required to be added. A member of the board will then move to adopt the proposed resolution and a seconder support it. When the motion is seconded the board will then vote on the resolution according to a process that is outlined in the bylaws of the organization. The votes are recorded by the corporate secretary and included in the minutes of board meetings. The final step is for the appropriate officers to accept the resolution.
While drafting and recording a resolution for the board may be daunting for new board members, having a well-defined understanding of how to write a resolution will make the process much easier. By using an established format and providing concise and clear information the board is competent to swiftly and efficiently pass resolutions which serve the needs of the business. Board Management Software will help keep your resolutions in a secure, online repository. This will ensure that they’re efficient and legal.
